REPORT TITLE:
Grants and subsidies


DESCRIPTION:
Requires the State to collect the remaining balance of grants,
subsidies, or CIP funds if the recipient can no longer or is
unwilling to continue to provide the services.  (HB1061 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1061
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO GRANTS AND SUBSIDIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 42F-104, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§42F-104[]]  Contracts for grants and subsidies.  An
 
 4 appropriation for a grant or subsidy shall be disbursed by a
 
 5 contract between the state agency designated the expending agency
 
 6 for the appropriation by the legislature, and the recipient of
 
 7 the grant or subsidy.  The funds can be used only for the public
 
 8 purpose for which the funds were appropriated by the legislature
 
 9 and shall be lapsed if the recipient is unable or unwilling to
 
10 provide the specified services.  The contract shall specify that
 
11 the state agency shall recover the remaining balance of the grant
 
12 or subsidy if the recipient can no longer or is unwilling to
 
13 continue to provide the services for which the grant or subsidy
 
14 was appropriated.  In the case of capital improvement projects,
 
15 the recipient shall satisfy the specified public purpose at least
 
16 until the improvements have been fully depreciated.  If the
 
17 recipient can no longer or is unwilling to satisfy the public
 
18 purpose for which the capital improvement project funds were
 
19 appropriated, the contract shall specify that the state shall
 
20 recover the pro rata share of the grant or subsidy less the
 

 
Page 2                                                     1061
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 depreciated value of the improvements.  All recoveries shall be
 
 2 realizations of the fund from which the grant or subsidy was
 
 3 made.  The contract shall be effective as of the first day of the
 
 4 fiscal year for which the funds for the grant or subsidy are
 
 5 appropriated, provided that up to one fourth of the total amount
 
 6 appropriated may be disbursed prior to the execution of the
 
 7 contract."
 
 8      SECTION 2.  New statutory material is underscored.
 
 9      SECTION 3.  This Act shall take effect on July 1, 1999.